HD Hyundai moves up supplier payments as global uncertainty grows

May 14, 2026, 10:48 am

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The corporate logo of HD Hyundai is shown in this file image. /HD Hyundai

HD Hyundai said Wednesday it will accelerate payments totaling 740 billion won ($540 million) to partner companies as prolonged instability in the Middle East continues to pressure global supply chains and raise raw material costs.

The company said supplier payments will be made up to nine days earlier than scheduled in an effort to ease financial burdens on partner firms facing liquidity strains.

The move comes as global supply chain disruptions and rising raw material prices intensify operational challenges for suppliers across industries.

Within HD Hyundai’s shipbuilding and offshore businesses, HD Hyundai Heavy Industries and HD Hyundai Samho will jointly prepay approximately 568 billion won in material costs to suppliers.

HD Hyundai Marine Engine and HD Hyundai Marine Solution will also provide early payments totaling 25.7 billion won and 10 billion won, respectively.

In the energy sector, HD Hyundai Electric plans to advance payments worth 133 billion won.

Meanwhile, construction equipment affiliate HD Hyundai Construction Equipment said it will shorten the adjustment cycle for its subcontract price linkage system, which reflects fluctuations in raw material costs in supplier payments.

The company added that it would strengthen support for urgent supplier requests and operational difficulties.

“The measure is intended to support stable business activities for our partner companies amid continued uncertainty in the external business environment,” an HD Hyundai official said.

“Our suppliers are partners sharing a common destiny with us, and we will continue implementing win-win cooperation measures for sustainable growth together,” the official added.

Last month, HD Hyundai also secured key shipbuilding raw materials such as ethylene and paint ingredients in advance to help smaller suppliers minimize production disruptions and maintain stable operations.

#HD Hyundai #supplier support #Middle East conflict #early payment #shipbuilding